ASML, the Dutch tech giant known for its advanced chip-making equipment, caused shockwaves on the AEX stock exchange after a technical blunder led to an early leak of its quarterly financial results. The prematurely released report revealed a sharp decline in new orders, leading to a steep sell-off that saw ASML’s stock price plummet by over 15% by the day’s end.
For the July to September period, ASML had expected an order inflow of around €5.4 billion. Instead, the leaked figures showed orders amounting to just €2.6 billion—less than half of what analysts were counting on. Investors reacted swiftly to the disappointing news, driving the company's stock down by 14% at one point before it finally settled at a 15.6% loss by the close of trading.
This decline added to the pressure ASML has been facing, with its stock now down 20% since reaching a peak back in July. The company, which plays a crucial role in the global semiconductor supply chain, acknowledged the premature release of the results, blaming it on a "technical error." The data was briefly visible on ASML’s website for around 30 minutes before being taken down, but the damage had already been done.
In addition to the order shortfall, ASML also revised down its revenue outlook for the coming years. Previously, the company projected net revenue for 2025 to fall between €30 billion and €40 billion. That forecast has now been trimmed to between €30 billion and €35 billion, a significant adjustment given the company’s previous bullish stance.
ASML’s margins have also taken a hit. For the third quarter, the net margin dropped to 50.8%, down from 51.5% in the previous quarter, with total net turnover sitting at €7.5 billion. The company’s outlook for 2025 isn’t any brighter, as it lowered next year’s gross margin expectations to between 51% and 53%, down from its previous forecast of 54% to 56%.
CEO Christophe Fouquet pointed to the slower-than-expected recovery in the global semiconductor market, saying, “It now seems that the recovery is more gradual than previously expected. The expectation is that this will continue into 2025, which leads to caution among customers.”
The fallout from ASML’s troubles didn’t stop at its own stock. Other semiconductor companies were also dragged down by the news, contributing to a broader decline in the AEX index, which fell by 2.5%. ASML’s Dutch peers, ASM International and Besi, saw their shares drop by nearly 14% and over 11%, respectively.
The impact extended beyond the Netherlands, as global semiconductor companies also felt the pinch. Nvidia in the U.S. saw its stock dip by 5%, while Taiwan’s TSMC fell by 1.5%. Intel, a key ASML customer, was trading 2.5% lower by the end of the day.
This episode highlights the challenges facing the semiconductor industry as it navigates a turbulent period of supply chain issues, shifting demand, and economic uncertainty. With ASML’s future revenue forecasts now clouded in doubt, investors remain on edge, unsure of what the next few months may hold for the global tech industry.
